Hotel Industry Asks Government for $250B Bailout
The coronavirus pandemic has caused a sharp decline in travel. Airline and hotels have been heavily affected by this. After airlines asked for a $50 billion bailout, the hotel industry is seeking a total of $250 billion for owners, employees and suppliers.
Hotel executives said they detailed the impact coronavirus is having on their industry in a meeting Tuesday with the Trump administration. The industry is hoping for $150 billion to allow hotel owners to continue to make their loan payments and to support employees who are being laid off. Another $100 billion would go to suppliers, from recreation providers to retailers.
The impact so far has been “more severe than 9/11 and the 2008 recession combined,” said Chip Rogers, CEO of the American Hotel & Lodging Association in a call with reporters. Hotel occupancy has fallen below 20% in many cities.
“We are facing a catastrophe that needs to be fixed,” said Roger Dow, CEO of the U.S. Travel Association according to USA Today. He said 83% of the travel industry is small businesses. “Right now, it’s important to keep these people working, keep these businesses operating.”